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MPs debate Company Law Reform Bill
10 July 2006
MPs will debate controversial proposals on changes to directors' duties under company law, on Tuesday 11 July, when the Government's Companies Bill (previously known as the Company Law Reform Bill) will be discussed in Standing Committee [1].
Campaigners, backed by thousands of people around the country [2], are calling on MPs to ensure that company directors have a duty to minimise the adverse impacts of business activities on local communities and the environment.
The Bill has already proved controversial - attracting a record number of amendments from MPs - and the clause on directors' duties has received widespread criticism for its focus on the duty of directors to make profits for shareholders over other concerns such as the welfare of employees, the good of the community and reducing impacts on the environment.
Labour MPs, supported by the Corporate Responsibility Coalition (CORE) and Trade Justice Movement, have tabled amendments to increase the weight given to corporate social responsibility and ensure that the Government provides more guidance to directors on how to perform their duties [3].
CORE Co-ordinator Hannah Ellis said:
"MPs face a clear choice today: is the role of directors solely to make profit for their shareholders - or should the director of a modern day company also recognise their obligations to the environment and wider society? In the 21st century, responsible business conduct should not be a choice, it should be a duty."
Notes
[1] The Company Bill standing committee sits at 10.30am on Tuesday 11 July when Members will discuss Clause 158 on directors' duties.
[2] More than 100,000 supporters of the Corporate Responsibility (CORE) coalition and the Trade Justice Movement have written to their MPs, urging them to call on the responsible minister to amend the Company Law Reform Bill (now the Companies Bill) to make company directors legally responsible for the impacts of their businesses on people and the environment.
[3] www.publications.parliament.uk/pa/cm200506/cmbills/190/ ¬
amend/60706m01.htm
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Published by Friends of the Earth Trust
Last modified: Jun 2008
